The 7 Best High-Dividend Mutual Funds -- The Motley Fool

As always, these are real questions from real readers and identities are always protected. Do you know anything about dividend investing or any resources to share on dividend investing? It seems like all personal finance bloggers are pushing index investing.

yzyjifoh.web.fc2.com - Dividend Stocks - Ratings, News, and Opinion

I understand indexing and am following that strategy right now. It must require more time and research compared to just picking index funds. My index ETFs all have very nice little dividend perks the cap-weighted average dividend of all the stocks included in the index.

How do I know a stock or company is awesome you might ask? Apple would have been a stock that growth investors loved. Growth investors tend to be on the opposite end of the spectrum from dividend investors. The idea is that if a company is paying a dividend, usually it is a fairly stable, mature company that has a proven record of profits.

Growth investors would argue that the real money is in identifying stocks that are quickly growing and have competitive advantages.

These types of companies are often small companies that are taking large risks and many pay only small dividends or none at all. It all comes back to the fact that there are essentially two ways a stock can make you money. It can go up in value whether through higher profits, stock buybacks, or anything else.

This is called a capital gain. The other way is through dividends.

This is where the true value of index investing lies: All of these authors seem to be smart and educated, and with their official-looking statistics they are all great advocates for their investing strategies. If your answer is also no, then picking index investing in the cheapest possible way is the only logical path forward. For example both approaches advocate for long-term buy-and-hold thinking. That mental reinforcement can be a really big help when everyone else is selling off.

If your registered accounts are full yay for you! Thanks for the mention, Kyle.

I think dividend investing particularly dividend growth investing is a fine strategy, but you have to stay extremely dedicated to the approach, which means practising extreme patience. Of course, that means fighting every behavioural bias you can imagine to keep you from tinkering with your portfolio too much.

I unsubscribed from all those individual stock alerts and honestly barely look at my portfolio now. Welcome to the dark side Robb. I look at my portfolio four times a year. Maybe twenty minutes total. Dividend investing, at least from a Canadian perspective, does not have to be a science. Own most of the companies in XIU and index the rest via VTI.

Dividend paying stocks make great sense non-registered, when registered accounts are full of course! Your time is better spent working on advancing your career and maybe learning something new to bring in extra income. I made sure to include that caveat in there. Canadian dividend stocks are exactly where I would go if my registered accounts were full.

Your email address will not be published. Notify me of followup comments via e-mail. Top Shelf Web Solutions. Start Here About Us Media Contact Us Binge Read Latest Posts Categories Investing Made Easy What Are RRSPs, TFSAs, and RESPs Anyway? Dividend Investing vs Index Investing by Kyle Emails From Readers 5 comments. Dividend investors will usually defend their strategy using three main selling points: Robb Engen on May 27, at Kyle on May 27, at 6: My Own Advisor on May 28, at 5: I also re-adjust my portfolio about 2 hours per year.

Toan on May 28, at 9: The way I see it, dividend-paying stocks are for those who need income coming in. It tends to require more time and effort spent for dividend investing to be worth it.

Dividend ETFs: Is Investing in Dividend Funds Worth It?

I love index-investing for this reason. Kyle on May 28, at 9: Submit a Comment Cancel reply Your email address will not be published. Facebook Twitter RSS Top Shelf Web Solutions.